Audit shows surplus decline at Pinnacol - Kansas City Business Journal:

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According to the recent audiy fromDeloitte & Touche LLP, which lawmakers reviewed Monday, the decrease is related to lossexs on bonds and common stocks. Pinnacol’s reserves were a source of scrutinyu earlier this year when Colorado legislators attempted toraid $500 million from the insure to plug gaps in the state budget. Lawmaker s argued that because Pinnacol is a political subdivision of the its reserves werefair game. But legislatorsa later retreated from the raidafteer Pinnacol’s CEO threatened to sue the stater and Gov. Bill Ritter indicated he would not supportgthe move.
A special committee will look into Pinnacol’d operations under Senate Bill 281, approved by lawmakers and Rittere during the most recent General Supporters of the bill saidthat Pinnacol’s uniquwe structure should be examined more closely. But opponents of the legislatiojn say the committee isa “witcyh hunt” to dismantle Pinnacol, which functioned better since it started operatinfg as a private interest in 2004. In an auditf summary, Deloitte said it identifies financial misstatementsthat haven’t been correctexd in the company’s books totaling $7.5 million in net income. Pinnaco l replied that the uncorrected statementesare “immaterial.
” Pinnacol reported a total of $2 billion in asset in 2008. It declared additional policyholdee dividendsof $120 million that year.